Global accountancy firm PwC has been banned from auditing listed companies in India for two years after it failed to detect the fraud at the heart of the heart of one of the country's biggest accounting scandals.

The founder of software services exporter Satyam Computer Services - sometimes referred to as "India's Enron" - admitted in 2009 that the firm had overstated earnings and assets amounting to approximately $1bn (£750m) for several years. Satyam was audited by Price Waterhouse - PwC's Indian audit unit - during that period.

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In a 108-page report, the Securities and Exchange Board of India said PwC neglected to check "glaring anomalies" in the financial details reported by Satyam. The fraud persisted for about five years beginning in 2003, in part because PwC did not independently check the veracity of Satyam's monthly bank statements.

In addition to the ban, the Indian unit has been fined the equivalent of £1.5m plus interest.

PwC said there had been "no intentional wrongdoing" by its firms, which operate as an international network of legally distinct member firms under a single umbrella. It will seek a stay on the order before it comes into effect at the end of March.

PwC's ability to audit the unlisted subsidiaries of multinational companies - a significant part of its business - is not affected by the ban.